Housing tax: the regions where taxpayers are the most successful

The total abolition of the housing tax for 80% of the French is supposed to bring in 555 euros on average to each household, but will in reality have very different effects depending on the territories. The gain will be the most important for the inhabitants of Brittany and the North, those of the center of the country, the Mediterranean rim and Corsica.

Bercy evaluated the effects of the abolition of the housing tax according to two criteria, the gain in purchasing power and the total number of exempt households.

It was arguably one of the most popular measures in Emmanuel Macron’s presidential program. From next year, the housing tax (TH) will be completely abolished for 80% of French people, and the government hopes to finally derive political benefits from it. The first slice of decline last year had gone unnoticed in the eyes of many French people, and majority leaders hope that the second slice that will materialize in the coming days in tax notices will eventually convince them.

However, the number of enthusiasts should vary greatly from region to region. Admittedly, the government promises an average gain of 555 euros for each household, but this amount actually varies enormously according to the territories. The documents attached to the Finance bill for 2020 make it possible to draw up the charts of the most winning territories thanks to this measure.

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The most varnished taxpayers are rather on the Atlantic coast (Brittany and Pays de la Loire), the North or the Ardennes, also in the center of France and finally around the Mediterranean rim or in Corsica, if the report is to be believed. economic, social and financial published by Bercy at the beginning of October.

Heterogeneity between municipalities

These inequalities between territories were precisely part of the arguments put forward by the candidate Macron to justify his removal measure. “There is a great heterogeneity between municipalities, both in terms of the voted housing tax rates and cadastral rental values”, recalls the budget document. Suddenly, to have a detailed assessment of the effects of the removal measure depending on the territory, the experts at Bercy relied on two indicators.

First, they sought to see municipality by municipality where the gain in purchasing power (expressed as a function of income) was greatest for households no longer paying the tax. Second point, it was a question of seeing what was the share of exempt households in each territory.

These two criteria make it possible to establish the ranking of the main winners of the reform. In terms of purchasing power gain, the main beneficiaries reside in Brittany, Pays-de-la Loire, the North or the Ardennes, with an increase of over 2%. “The departments of North, Côtes d’Armor and Mayenne form the top trio of departments in metropolitan France with the highest average TH rates”, is it recalled in the document.

La Creuse stands out

If we look at the criterion of the rate of exempt population, then the center of France comes first, Creuse thus being the department with the largest number of exempt persons. Finally for the Mediterranean rim and Corsica, the reason is rather to seek “In the amounts of TH, above the national average, than in the proportion of exempt TH households”. The example of Perpignan is given, where the purchasing power gain has been evaluated at + 2.4% on average while 84.4% of households will be exempt.

Finally, if there are big winners, there are some who are a little less so. The purchasing power gain will thus be closer to 0.75% in certain communes of Yvelines, Savoie or Doubs, for example. All these estimates could however be revised by 2023, when the wealthiest 20% of French people will in turn benefit from the abolition of the housing tax.